Question 1

Liability in contract

Accepted Answer

A) acts as an incentive to commit a breach of contract. 
B) acts as an economic deterrent to committing a breach of contract. 
C) acts as a punishment for committing a breach of contract. 
D) acts as both an economic deterrent and a punishment for committing a breach of contract. 
E) all of the above 
A) acts as an incentive to commit a breach of contract. 
B) acts as an economic deterrent to committing a breach of contract. 
C) acts as a punishment for committing a breach of contract. 
D) acts as both an economic deterrent and a punishment for committing a breach of contract. 
E) all of the above

Question 2

Where an anticipatory breach occurs,the innocent party must carefully consider its election.Explain.

Accepted Answer

The election is to either accept the bre

Question 3

Jack agrees to paint the home of Jim.During the negotiations,Jim leads Jack to believe that he is in some financial predicament and so cannot pay the full fee.Jack agrees to give him a discount because of his predicament.A few days before Jack is due to perform,he learns from a source that Jim is a very wealthy man.Jack decides that because he has been tricked he will not honour his obligation to paint the home.He gives away all his tools and equipment and tells Jim that he cannot paint the home because his tools have been stolen.Jack's conduct is

Accepted Answer

A) a breach of contract by implied repudiation. 
B) a breach of a condition. 
C) not a breach of contract. 
D) a breach of contract because Jack's conduct renders performance impossible. 
E) a breach of contract by express repudiation. 
A) a breach of contract by implied repudiation. 
B) a breach of a condition. 
C) not a breach of contract. 
D) a breach of contract because Jack's conduct renders performance impossible. 
E) a breach of contract by express repudiation.

Question 4

Explain the attitude of the courts towards the use of exemption clauses.

Accepted Answer

The courts generally frown on the use of

Question 5

The consequences of a purely economic approach to breach of contract can result in

Accepted Answer

A) the decision by a party to ensure that all contractual obligations are met. 
B) the decision by a party not to perform a contractual obligation. 
C) the decision by a party to breach the contract. 
D) the decision by a party to actually weigh the consequences of breach against its reward. 
E) the decision by a party to merely perform a contractual obligation. 
A) the decision by a party to ensure that all contractual obligations are met. 
B) the decision by a party not to perform a contractual obligation. 
C) the decision by a party to breach the contract. 
D) the decision by a party to actually weigh the consequences of breach against its reward. 
E) the decision by a party to merely perform a contractual obligation.

Question 6

Where a person has a contractual obligation,he or she has to perform the whole obligation before being entitled to enforce the contract.He or she cannot perform part of the obligation and then seek to enforce the contract.

Accepted Answer

A) True 
 B)False

Question 7

Explain the notion of continuous expectation of performance.

Accepted Answer

The courts have held that a contract exi

Question 8

A breach of a minor term in a contract

Accepted Answer

A) does not entitle an aggrieved party to abandon obligations under a contract. 
B) will enable an aggrieved party to elect to treat the breach as discharging the contract. 
C) does not entitle an aggrieved party to damages. 
D) amounts to a frustration of the contract. 
E) amounts to a termination of the contract. 
A) does not entitle an aggrieved party to abandon obligations under a contract. 
B) will enable an aggrieved party to elect to treat the breach as discharging the contract. 
C) does not entitle an aggrieved party to damages. 
D) amounts to a frustration of the contract. 
E) amounts to a termination of the contract.

Question 9

If one party breaches a condition of a contract,the other party will generally be entitled to repudiate the contract.

Accepted Answer

A) True 
 B)False

Question 10

Where the parties to a contract agree in advance on an amount of damages to be paid in the event of a breach,in order for the damages to be effective,

Accepted Answer

A) they can be any amount agreed on by the parties,who are presumed to know what they have contracted for. 
B) they must be reasonable in the context of the contract. 
C) they must be meant to penalize the party committing the breach. 
D) they must relate solely to the breach,without regard to penalty or reasonableness. 
E) none of the above 
A) they can be any amount agreed on by the parties,who are presumed to know what they have contracted for. 
B) they must be reasonable in the context of the contract. 
C) they must be meant to penalize the party committing the breach. 
D) they must relate solely to the breach,without regard to penalty or reasonableness. 
E) none of the above

Question 11

Distinguish an injunction order from an order for specific performance.

Accepted Answer

An injunction is an order preventing som

Question 12

Use the fact situation in Q8 to answer the related question that follows. In deciding whether you should win your lawsuit against the parking lot owners,the court will

Accepted Answer

A) look at the type of damage to your car and the contents that was stolen. 
B) look at how wealthy the parking lot owners are. 
C) look at the wording on the sign. 
D) look at the ticket. 
E) look at whether the words on the sign were brought to your attention. 
A) look at the type of damage to your car and the contents that was stolen. 
B) look at how wealthy the parking lot owners are. 
C) look at the wording on the sign. 
D) look at the ticket. 
E) look at whether the words on the sign were brought to your attention.

Question 13

A genuine estimate of damages contained in a contract as a term of the contract can best be described as

Accepted Answer

A) reliance damages. 
B) liquidated damages. 
C) nominal damages. 
D) expectation damages. 
E) consequential damages. 
A) reliance damages. 
B) liquidated damages. 
C) nominal damages. 
D) expectation damages. 
E) consequential damages.

Question 14

The Lockheart Community has a restrictive covenant that does not allow more than a 1 metre solid fence within 3 metres of any public walkway.Ignoring the covenant,Mr.Bailey starts to build a 2 metre high rock wall along his front sidewalk.Mr.Bailey might be subject to

Accepted Answer

A) a restraining order. 
B) the sheriff's ordnance writ. 
C) the community compliance marshal. 
D) the building inspector. 
E) a court injunction. 
A) a restraining order. 
B) the sheriff's ordnance writ. 
C) the community compliance marshal. 
D) the building inspector. 
E) a court injunction.

Question 15

Nominal damages are

Accepted Answer

A) assessed with purely personal or passionate reasons. 
B) assessed where a party commits a tort within the context of a contract. 
C) awarded to serve as an acknowledgement to a breach of contract where no appreciable loss has been sustained by the promisee. 
D) used for allowing the case to go to a higher court. 
E) where damages are determined by local bylaws. 
A) assessed with purely personal or passionate reasons. 
B) assessed where a party commits a tort within the context of a contract. 
C) awarded to serve as an acknowledgement to a breach of contract where no appreciable loss has been sustained by the promisee. 
D) used for allowing the case to go to a higher court. 
E) where damages are determined by local bylaws.

Question 16

Which of the following is NOT true?

Accepted Answer

A) Not every breach may distract a contract. 
B) If a breach is of a minor term,the contract is still binding on both parties. 
C) A party to a contract may breach it by acting in a way that makes performance impossible. 
D) If a breach is of an essential term,the party not in breach is still bound,but the party committing the breach may elect to discharge the contract. 
E) A major term may be broken in only a minor respect. 
A) Not every breach may distract a contract. 
B) If a breach is of a minor term,the contract is still binding on both parties. 
C) A party to a contract may breach it by acting in a way that makes performance impossible. 
D) If a breach is of an essential term,the party not in breach is still bound,but the party committing the breach may elect to discharge the contract. 
E) A major term may be broken in only a minor respect.

Question 17

Casey Construction abandoned its $23 million North County road project after spending $7 million.By this time,one progress payment of $5 million had been made.The county immediately contracted with Beachwood Corp.to take over and finish the project for $21 million.Expectation damages for Casey Construction would be

Accepted Answer

A) the difference between $16 and $21 million. 
B) the difference between $21 and $23 million. 
C) zero,since Casey did $2 million of work where no payment was received. 
D) none; only consequential damages might apply. 
E) the difference between $18 and $21 million. 
A) the difference between $16 and $21 million. 
B) the difference between $21 and $23 million. 
C) zero,since Casey did $2 million of work where no payment was received. 
D) none; only consequential damages might apply. 
E) the difference between $18 and $21 million.

Question 18

Specific performance will NOT generally be available for breach of a contract for

Accepted Answer

A) sale of goods. 
B) contracts requiring unique personal skill or judgment. 
C) sale of goods that have been custom-made. 
D) sale of works of art. 
E) sale of antiques. 
A) sale of goods. 
B) contracts requiring unique personal skill or judgment. 
C) sale of goods that have been custom-made. 
D) sale of works of art. 
E) sale of antiques.

Question 19

Michael's Shop has a standard from contract that includes an exemption clause.Michael enters into an agreement with Jill.Jill signs the agreement without reading it because she says she trusts Michael.When Michael fails to perform his part of the agreement,Jill tries to sue.The court,in considering the effect of the exemption clause,will most likely

Accepted Answer

A) seek the opinion of Jill on how the clause will affect her. 
B) strictly construe the clause against Michael. 
C) require that experts provide it with a report on the effect of the clause. 
D) refuse to apply the court. 
E) apply the clause. 
A) seek the opinion of Jill on how the clause will affect her. 
B) strictly construe the clause against Michael. 
C) require that experts provide it with a report on the effect of the clause. 
D) refuse to apply the court. 
E) apply the clause.

Question 20

All of the following may bar someone from obtaining an equitable remedy EXCEPT

Accepted Answer

A) if to do so would affect an innocent purchaser. 
B) if the plaintiff is a minor and the contract couldn't be enforced against him or her. 
C) if the plaintiff her- or himself did not have "clean hands." 
D) if there were unreasonable delays in taking the other party to court. 
E) if no attempt was made by the defendant to mitigate damages. 
A) if to do so would affect an innocent purchaser. 
B) if the plaintiff is a minor and the contract couldn't be enforced against him or her. 
C) if the plaintiff her- or himself did not have "clean hands." 
D) if there were unreasonable delays in taking the other party to court. 
E) if no attempt was made by the defendant to mitigate damages.

Exam 34: Breach of Contract and Its Remedies

Liability in contract

Where an anticipatory breach occurs,the innocent party must carefully consider its election.Explain.

Explain the attitude of the courts towards the use of exemption clauses.

The consequences of a purely economic approach to breach of contract can result in

Where a person has a contractual obligation,he or she has to perform the whole obligation before being entitled to enforce the contract.He or she cannot perform part of the obligation and then seek to enforce the contract.

Explain the notion of continuous expectation of performance.

A breach of a minor term in a contract

If one party breaches a condition of a contract,the other party will generally be entitled to repudiate the contract.

Where the parties to a contract agree in advance on an amount of damages to be paid in the event of a breach,in order for the damages to be effective,

Distinguish an injunction order from an order for specific performance.

Use the fact situation in Q8 to answer the related question that follows. In deciding whether you should win your lawsuit against the parking lot owners,the court will

A genuine estimate of damages contained in a contract as a term of the contract can best be described as

The Lockheart Community has a restrictive covenant that does not allow more than a 1 metre solid fence within 3 metres of any public walkway.Ignoring the covenant,Mr.Bailey starts to build a 2 metre high rock wall along his front sidewalk.Mr.Bailey might be subject to

Nominal damages are

Which of the following is NOT true?

Specific performance will NOT generally be available for breach of a contract for

All of the following may bar someone from obtaining an equitable remedy EXCEPT

Law, society, and Business

The Machinery of Justice

The Law of Torts

Professional Liability: the Legal Challenges

Formation of a Contract: Offer and Acceptance

Formation of a Contract: Consideration and Intention

Formation of a Contract: Capacity to Contract and Legality of Object

Grounds Upon Which a Contract May Be Set Aside: Mistake and Misrepresentation

The Requirement of Writing

The Interpretation of Contracts

Privity of Contract and the Assignment of Contractual Rights

The Discharge of Contracts

Sale of Goods

Bailment and Leasing

Insurance and Guarantee

Agency and Franchising

The Contract of Employment

Negotiable Instruments

Intellectual Property

Interests in Land and Their Transfer

Landlord and Tenant

Mortgages of Land and Real Estate Transactions

Sole Proprietorships and Partnerships

The Nature of a Corporation and Its Formation

Corporate Governance: the Internal Affairs of Corporations

Corporate Governance: External Responsibilities

Secured Transactions

Creditors Rights

Government Regulation of Business

International Business Transactions

Electronic Commerce

Privacy

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